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Lo.6 Lori, who is single, purchased a new copier (five-year class property) for $50,000 and new

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Question

Lo.6 Lori, who is single, purchased a new copier (five-year class property) for $50,000 and new furniture (seven-year class property) for $275,000 on May 20, 2010. Lori expects the taxable income derived from her business (without regard to the amount expensed under $$179) to be about $400,000. Lori wants to elect immediate $$179 expensing, but she doesn?t know which asset she should expense under $$179. If Congress reenacts additional first-year depreciation for 2010, she elects not to take additional first-year depreciation.;a. Determine Lori?s total deduction if the $$179 expense is first taken with respect to the copier.;b. Determine Lori?s total deduction if the $$179 expense is first taken with respect to the furniture.;c. What is your advice to Lori?

 

Paper#32310 | Written in 18-Jul-2015

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